Cryptocurrency analysts have made poor predictions for the performance of Facebook’s new GlobalCoin cryptocurrency set to launch in 2020.
According to a report from cryptocurrency analytics firm Diar, Facebook’s new cryptocurrency, Globalcoin, set to launch in 2020 will have issues gaining traction based on the demographics of the users on Facebook’s platform. Diar argues that due to the age demographics of Facebook’s users, adoption of the cryptocurrency will be slow. According to Diar’s research, less than half of Facebook users are under the age of 35 and the number of users aged over 65 has doubled since 2012.
Currently, older demographics are the weakest in terms of interest and investment in bitcoin and other cryptocurrencies. As a result, the analysts believe it is unlikely that they will show great interest in Facebook’s GlobalCoin. Diar outlined the barriers that Facebook faces when attempting to convince older users to adopt cryptocurrency, writing:
Educating 25% of the world’s population about current cryptocurrency infrastructure that requires private-key management and the glaring reminder of the possible ultimate loss of funds is also unlikely as it would result in the project’s near instant failure.
While Facebook’s main user base continues to grow older, younger demographics are showing less interest in the social media platform according to research from the Pew Research Center. Less than half of U.S. teenagers use Facebook compared to 85 percent of teens using YouTube. Snapchat has also managed to gain on Facebook in the teen demographic, but Facebook’s image-sharing platform Instagram continues to remain popular amongst teens.
Pew research also shows that Facebook is popular amongst lower-income households, which also does not bode well for the adoption of GlobalCoin. The report states: “Lower-income teens are far more likely than those from higher-income households to say Facebook is the online platform they use most often.”
Read the full report from Diar here.